Form 941 vs Form 940: what's the difference?
Form 941 is the quarterly return for income tax withheld and Social Security and Medicare on wages. Form 940 is the annual return for federal unemployment tax. Most employers file both. Form 941 is due the last day of the month after each quarter, and Form 940 is due January 31.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- Form 941. Withheld income tax, Social Security and Medicare
- Form 940. Federal unemployment tax, FUTA
- Due dates. Form 941 by the last day of the month after each quarter
What does Form 941 report?
Form 941 shows the wages you paid in the quarter, the federal income tax you withheld, and both shares of Social Security and Medicare. It also reconciles those amounts to the deposits you made. If you've been depositing correctly, the balance due should be close to zero.
What does Form 940 report?
Form 940 covers FUTA, which only the employer pays. It's calculated on the first $7,000 of each employee's wages. Most employers qualify for a credit that lowers the rate to 0.6%, but that depends on paying state unemployment on time. Employers in a credit reduction state may owe more.
| Detail | Form 941 | Form 940 |
|---|---|---|
| How often | Quarterly | Yearly |
| Covers | Income tax, Social Security, Medicare | Federal unemployment |
| Who pays | Employee and employer | Employer only |
| Due | Apr 30, Jul 31, Oct 31, Jan 31 | Jan 31 |
If a due date lands on a weekend or holiday, it moves to the next business day.
When do you have to deposit the tax?
The return and the payment aren't the same thing. Payroll taxes are usually deposited monthly or semiweekly, based on your lookback period, using EFTPS or your payroll provider. New employers usually start on the monthly schedule. FUTA is generally deposited quarterly once you owe more than $500.
What if you have no payroll in a quarter?
You generally still file a Form 941 unless you've filed a final return or you're a seasonal employer who marks that box. Don't just stop filing, or the IRS will send notices. If you've stopped paying staff for good, mark your return as final.
What if you made a mistake?
Use Form 941-X to correct a Form 941 you've already filed. Don't change a future return to compensate. Late filings and late deposits carry separate penalties, covered in what happens if you miss a payroll tax deposit. And for your year-end forms, see the W-2 deadline.
Sources
General information, not tax advice for your situation.
Do I have to file Form 941 if I have only one employee?
Yes. One employee on payroll means you generally file Form 941 each quarter, unless the IRS has told you to file Form 944 annually.
What is Form 944?
It's an annual version of Form 941 for very small employers, and the IRS tells you if you should use it.
Does my payroll company file these for me?
Most full-service providers do. Check your reports, because you stay responsible if something isn't filed or paid.
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